April 20, 2021

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Renter’s Insurance: Myths Debunked – and How to Save

Renters Insurance

Imagine losing your belongings within a rental premise to a calamity. You surely need a helping hand to get back on your feet. Renters insurance California is that helping hand.

Renters Insurance is essentially a set of coverages designed to safeguard the possessions within the rented property from fire, burglary, vandalism and any force majeure. Wildfires, high winds, earthquakes, and floods all count. The policy even funds temporary stay elsewhere, should your property be rendered uninhabitable by a natural calamity or an accident, say a kitchen fire.

Yet, among the 81 million American tenants, 50 million are uninsured. Some are uninformed on their liabilities as a renter or how tenant insurance works, while others are given to a few misconceptions. Let’s bridge the knowledge deficit and bust some myths, one at a time.

  • Renters insurance involves hefty premiums:

It’s perhaps the biggest misconception that keeps tenants away from the Renters Insurance advantage. Most tenants consider Renters insurance Anaheim to be as costly as homeowner insurance. But it’s not. Why? Well, homeowners are paying to safeguard the building, but the renters are insuring only their personal belongings within the rented building.

Averagely, the homeowners’ insurance costs $1,031 a year in California. On the other hand, you can take out the renter’s coverage for anything between $150 and $300 yearly. At an expense of 55 cents a day, you get liability coverage of $100,000 and property coverage of $30,000.

  • My landlord’s insurance will cover my damages:

Many tenants tend to stay uninsured for the impression that their landlord’s insurance will cover their damages as well. Sadly, they end up regretting their decision when calamity strikes. The reason being, the landlord’s policy might cover the building only but not what’s inside it.

While the homeowner will be financially assisted by the insurance company, you’ll be bearing the losses on your own should your belongings be lost, burglarized, vandalized or damaged. Many landlords even make Renters Insurance California a requisite for their tenants.

  • My roommates’ insurance will pay for me:

Renter’s policies may or may not cover roommates. You are better off clarifying this with your roommate. Even if the roommate is covered, it makes sense to fetch your cover.

The renter’s policy typically comes with deductibles and restrictions on the payout. You may have a hard time splitting the deductibles. Plus, in case your belongings are costlier than your roommate’s, you’ll have to deal with the issue at an inappropriate time.

  • My possessions are not worth insuring:

Tenants often underestimate the worth of their belongings and hence, stay uninsured. If you too are one among them, it’s time to take a long and hard look at your possessions. Now, imagine the replacement costs if you lose them to something beyond your control.

You might lack designer furniture, expensive carpets or state of the art entertainment systems. But you must be having a LED television, laptop, appliance, and other standard household fixtures. Don’t forget the jewelry that has both, monetary and emotional value.

  • Only my personal belongings are covered:

Renters insurance California has more to it than what’s generally perceived. So, if you think the policy covers your personal damages only, think again. A typical tenant insurance policy covers all possible liabilities that you might be exposed to. Sounds interesting, isn’t it?

Say, your pipes explode and water seeps into the next apartment, causing damage to the neighbor’s property. Or, your friend slips in your apartment and ends up with a broken back. In either case, the policy will pay for the damages, medical bills, and legal expenses.

How to save?

Now that you know why Renters insurance Anaheim makes sense, it’s time to learn how to get the best end of the deal. Here’re a few simple yet effective tips to save on premiums.

  • Opt for higher deductibles, if possible. Higher deductibles mean lesser premiums.
  • Be thoughtful when deciding what to insure. Only items requiring high replacement costs should be insured.
  • Invest in proper security systems and fire safety measures.
  • Buying all your policies from one insurer often attract significant rebates.
  • Paying the entire annual premium in advance also ensures savings.
  • Smoking often leads to fires and heftier premiums. So, quit it.
  • Shop the market, as different insurers use different formulas to calculate premiums.

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